Budgetary transparency

Had more information on the 200-billion-yuan (US$29 billion) worth of treasury bonds to be issued on behalf of local governments come earlier, doubts about the legitimacy of this debt plan would have been dispelled.

Belated as it is, however, the Ministry of Finance's clarification can still add to the public's confidence in the country's massive stimulus package by enhancing budgetary transparency. A clear-cut definition of obligations between central and local governments is crucial to the efficiency of the use of fiscal deficits as they expand in coming years.

To fund a record fiscal deficit and spur growth amid the global financial and economic crisis, China has planned 950 billion yuan (US$139 billion) in treasury bill sales this year, of which 200 billion will be issued on behalf of local governments.